Revision to Funding Formula for Schools

Mr Lim Biow Chuan asked the Minister for Education if he will clarify the amount of funding provided by the Government for Singapore schools and whether all schools will be funded appropriately to meet the school's requirements and programmes.

Mr Ang Wei Neng asked the Minister for Education in light of the new funding formula for schools (a) what is the rationale for cutting the funding for the Integrated Programme rather than the Gifted Education Programme; and (b) which primary and secondary schools have more than 80% of their normal classrooms installed with air-conditioning units and whether the operating costs of the air-conditioning units are funded under this new formula.

I thank Mr Lim Biow Chuan, Mr Edwin Tong, Mr Ang Wei Neng and Mr Yee Jenn Jong for their interests in how our schools are resourced.

Mr Lim asked whether all schools will be funded appropriately to meet the schools' requirements and programmes. This is the crux of the matter. Indeed, MOE funds our schools on the basis of their requirements and programmes, so that each school has adequate resources to develop the students under its charge. MOE also aims for the resources to be used prudently to achieve the desired educational outcomes.

Mr Ang and Mr Tong asked about the rationalisation of funding for school programmes. I appreciate that recent media reports may have caused concerns. Please allow me to set out the context.

Our schools provide a range of programmes to develop the students under their charge, taking into account their strengths and interests. We have a school landscape that is made up of diverse offerings. Within this landscape, independent schools play an important role in exploring new approaches of developing and stretching students with a strong academic foundation. We are

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committed to supporting and resourcing independent schools appropriately so that they continue to stretch their students in their areas of strengths, and, just as important, to inculcate a sense of service to our society.

All schools, including independent schools, are resourced based on the programmes they offer and their enrolment. The Ministry conducted a review recently to assess if independent schools are resourced appropriately, taking into account factors such as the higher overheads in schools with smaller enrolments. Allow me to clarify several points on which there may be some misunderstanding.

First, let me set the record straight on the issue of independent school funding. As a result of the review, more schools received increased funding this year. Six out of 10 independent schools received up to 5% more funding, and only four did not. For these four, their funding is around 3% less, at the most. The main reason for the review is that schools with higher enrolment can spread their overheads better, while schools with lower enrolment cannot enjoy the economies of scale. To adjust for this, MOE introduced a fixed component and a variable component depending on the student enrolment number.

Second, there is no change to funding for the Integrated Programme. Apart from the independent schools, the Integrated Programme is also offered in some of our Government and Government-aided schools. For students who are on both the school-based gifted education programme and the Integrated Programme, our review found that the students can develop well and fully with the funding provided by one programme grant. For these students, schools will receive only the funding for the school-based gifted education programme. This streamlining allows us to use resources more efficiently, without affecting educational outcomes.

Third, in rolling out these changes, MOE engaged the key stakeholders and management teams to ensure that schools are able to manage. We are confident that the schools can continue to provide quality and holistic education for their students. Our aim is to ensure that we continue to pursue excellence at all levels, regardless of where the students are – it is never to level down. We also want to encourage our schools to use the resources prudently to achieve maximum impact.

Fourth, some parents are concerned whether, as a result of the changes, independent schools may have to raise fees. As I indicated earlier, more schools are receiving higher funding. Those that did not actually enjoy greater existing

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economies of scale. I would like to assure parents that an education in an independent school will continue to remain affordable and accessible to all eligible students.

In fact, just this year, the Ministry enhanced the independent school bursary (ISB) to better support Singaporean students in independent schools. Independent schools have not increased school fees for 2014. We must keep our schools, including independent schools, open to all, and continue to encourage excellence in all our students' pursuits. The Ministry will continue to work closely with our independent schools to ensure that fees remain affordable.

As part of the resourcing review, the Ministry also discussed with the management of independent schools the areas where resources can be utilised more effectively to achieve good educational outcomes. For example, we have discussed with schools the judicious use of air-conditioning as we strive to be ecologically sustainable and cost-effective in operating our schools. We also engaged with the independent schools on focusing their fundraising efforts on areas with strong educational merits and to do so at a pace that would not overly burden teachers, parents and students.

The Ministry appreciates and welcomes the strong support of the alumni of these schools in donating funds and in volunteering their services. In fact, the strengths of many of these schools include their long histories and a tradition of alumni support. At the same time, we should not put too heavy a burden on teachers, parents and students to raise funds, as that may deter some students, especially those from less well-off families, from applying to the school. This is all about striking a good balance.

I am heartened that independent schools have responded positively. Some principals have noted that this is an opportunity to review existing programmes, such as immersion programmes, to explore whether the same outcomes can be achieved in a more cost-effective way. I am happy our school leaders understand and support the intent of the review.

I now turn to Mr Yee's questions on the resourcing of different categories of schools.

Singapore is fortunate to be in a position to invest heavily in education. Funding for the various schools is not a zero-sum game – we do not have to cut funding to one school to give to another. With good economic growth and a

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healthy fiscal position, MOF provides sufficient resources to fund every school to meet our educational objectives. MOE has significantly increased its investment in education across all levels and schools in the past decade. The per capita cost of educating a primary school student more than doubled from $3,600 in 2004 to $8,700 in 2013. Likewise, the per capita cost of secondary education almost doubled during this period, from $5,700 to $10,800.

The Ministry appreciates the resources that have been given and it is our responsibility, at every level, to continue to ensure that we are prudent in the use of these funds in our schools.

Schools are resourced on a needs-basis. The actual resources provided to each school depend on the needs of the students, the programmes offered and the enrolment. Resourcing for each school varies, even within the same category of schools that Mr Yee has asked about.

Resourcing can vary depending on the programmes offered by the school as well as enrolment. For example, if a school offers a language elective programme or a particular niche or a learning support programme, its funding would reflect the additional resources for the programmes offered. For the same programme, the resources provided are also dependent on the number of students in the school on the programme since not all students in the school are on the same programmes.

We also resource schools based on the profile of the student body. For example, for schools with more at-risk students, more resources are provided for counselling support. The overall school enrolment will also affect the level of funding. On the other hand, comparison by per capita funding has its limitation as it does not take into account similar overheads that schools have to bear regardless of the enrolment.

A comparison across different groups of schools based on the averages would therefore not be meaningful. Resources are part of the story, but the fundamental question is how each school can best cater to the holistic learning needs of each student and best achieve the desired outcomes of the programmes.

In summary, let me thank all the Members who have raised questions. While it is understandable that attention is paid to specific items and numbers, I hope that we can take a step back to look at the broader principles and values that undergird these changes. MOE will continue to invest adequately in all

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schools to develop our students fully and holistically. We will continue to encourage our schools to use resources prudently and effectively. This will also have the effect of inculcating the right values in our students. We will continue to encourage all schools to strive for excellence and are confident that independent schools, as with other schools, will continue to deliver quality education for many years to come.